Comments on: The Rapid (and/or unexplainable)Rise of Equity Bank http://www.kenyanentrepreneur.com/the-unexplainable-rapid-rise-of-equity-bank "A black market is a free market operating against the wishes of the state." – Harry Browne. Fri, 10 Sep 2010 18:29:31 +0000 hourly 1 By: weslie shiro http://www.kenyanentrepreneur.com/the-unexplainable-rapid-rise-of-equity-bank#comment-69737 weslie shiro Fri, 16 May 2008 20:41:21 +0000 http://www.kenyanentrepreneur.com/?p=1175#comment-69737 they have poor customer service and there is no order at all in their ATMs...

they have poor customer service and there is no order at all in their ATMs…

]]> By: weslie shiro http://www.kenyanentrepreneur.com/the-unexplainable-rapid-rise-of-equity-bank#comment-69736 weslie shiro Fri, 16 May 2008 20:40:01 +0000 http://www.kenyanentrepreneur.com/?p=1175#comment-69736 ............

…………

]]> By: Sijui http://www.kenyanentrepreneur.com/the-unexplainable-rapid-rise-of-equity-bank#comment-68590 Sijui Thu, 08 May 2008 14:56:01 +0000 http://www.kenyanentrepreneur.com/?p=1175#comment-68590 KE, I'm not sure of the specifics but my understanding is different from your's......guaranteeing the loans does not necessarily mean disbursing the cash.........I take it to mean a legal obligation that if Equity disburses its own cash for these loans and the farmers default, Agra will reimburse Equity. And frankly it should not be a grant, that is why the Cooperative Movement failed until state subsidies......there is no accountability and consequences. When people know it is 'free' money, there is little incentive to be responsible and disciplined. To me this is the best situation, farmers understand they hold real financial liability and obligation if they do not repay yet they are not penalized for not having collateral upfront. Furthermore it rewards entrepreneurship.....I bet you these farmers will pay back every dime because they want to develop a sound credit history with Equity and have access to even larger pots of cash like preferential lines of credit, bigger loans, mortgage, investment options etc...... http://www.bdafrica.com/index.php?option=com_content&task=view&id=7462&Itemid=5848 this guy gets it and is a student of the bottom of they pyramid that is why he is now filthy rich!

KE, I’m not sure of the specifics but my understanding is different from your’s……guaranteeing the loans does not necessarily mean disbursing the cash………I take it to mean a legal obligation that if Equity disburses its own cash for these loans and the farmers default, Agra will reimburse Equity.

And frankly it should not be a grant, that is why the Cooperative Movement failed until state subsidies……there is no accountability and consequences. When people know it is ‘free’ money, there is little incentive to be responsible and disciplined.

To me this is the best situation, farmers understand they hold real financial liability and obligation if they do not repay yet they are not penalized for not having collateral upfront. Furthermore it rewards entrepreneurship…..I bet you these farmers will pay back every dime because they want to develop a sound credit history with Equity and have access to even larger pots of cash like preferential lines of credit, bigger loans, mortgage, investment options etc……

http://www.bdafrica.com/index......temid=5848
this guy gets it and is a student of the bottom of they pyramid that is why he is now filthy rich!

]]> By: daniel.waweru http://www.kenyanentrepreneur.com/the-unexplainable-rapid-rise-of-equity-bank#comment-68398 daniel.waweru Wed, 07 May 2008 00:33:30 +0000 http://www.kenyanentrepreneur.com/?p=1175#comment-68398 Proudkaleo, maiinat, Hongera kwenu for hanging tough. I thought about getting equity in Equity in Dec, but then hesitated because I was unsure about the politics. I'm kicking myself now.

Proudkaleo, maiinat,

Hongera kwenu for hanging tough. I thought about getting equity in Equity in Dec, but then hesitated because I was unsure about the politics. I’m kicking myself now.

]]> By: pesadodo http://www.kenyanentrepreneur.com/the-unexplainable-rapid-rise-of-equity-bank#comment-68395 pesadodo Wed, 07 May 2008 00:09:36 +0000 http://www.kenyanentrepreneur.com/?p=1175#comment-68395 Annon@1:48: I am sure like most banks, Equity earns its money from interest on loans. I understand the interest from loans given to folks to buy the SFCM shares alone will net equity over 15 billion shillings. They also have non-interest, fee-based income I am sure. The diaspora banking if and when it picks up will generate some of this.

Annon@1:48:

I am sure like most banks, Equity earns its money from interest on loans. I understand the interest from loans given to folks to buy the SFCM shares alone will net equity over 15 billion shillings.

They also have non-interest, fee-based income I am sure. The diaspora banking if and when it picks up will generate some of this.

]]> By: kenyanentrepreneur http://www.kenyanentrepreneur.com/the-unexplainable-rapid-rise-of-equity-bank#comment-68392 kenyanentrepreneur Tue, 06 May 2008 23:37:53 +0000 http://www.kenyanentrepreneur.com/?p=1175#comment-68392 Sijui: Bdafrica.com is really doing a fantastic job with it's business reporting. I don't know who's running that paper, but they are far ahead of their counterparts at both the Standard and the Nation. I was reading the article to the link you posted above, which said the following about this new loan scheme: "The money will be distributed immediately and will be guaranteed with Sh325 million from the Alliance for the Green Revolution in Africa (Agra) and the International Fund for Agriculture (Ifad). The security is meant to cushion Equity Bank against defaults or natural calamities". So, basically, this foundation is giving Equity money (by guaranteeing it's loans) and Equity is incurring no risk whatsoever (great for Equity of course) but is it that good for the poor farmers? Why give this "free" money to a bunch of rich bankers? give it directly to the farmers in the form of grants, not loans. It doesn't make sense to me.

Sijui:

Bdafrica.com is really doing a fantastic job with it’s business reporting. I don’t know who’s running that paper, but they are far ahead of their counterparts at both the Standard and the Nation.

I was reading the article to the link you posted above, which said the following about this new loan scheme:

“The money will be distributed immediately and will be guaranteed with Sh325 million from the Alliance for the Green Revolution in Africa (Agra) and the International Fund for Agriculture (Ifad). The security is meant to cushion Equity Bank against defaults or natural calamities”.

So, basically, this foundation is giving Equity money (by guaranteeing it’s loans) and Equity is incurring no risk whatsoever (great for Equity of course) but is it that good for the poor farmers? Why give this “free” money to a bunch of rich bankers? give it directly to the farmers in the form of grants, not loans.

It doesn’t make sense to me.

]]> By: Sijui http://www.kenyanentrepreneur.com/the-unexplainable-rapid-rise-of-equity-bank#comment-68379 Sijui Tue, 06 May 2008 20:54:50 +0000 http://www.kenyanentrepreneur.com/?p=1175#comment-68379 http://www.bdafrica.com/index.php?option=com_content&task=view&id=7449&Itemid=5812 brilliant...just brilliant.......am also glad that AGRA is turning out to be more than just a bureacratic talk shop!!!!!!

http://www.bdafrica.com/index......temid=5812

brilliant…just brilliant…….am also glad that AGRA is turning out to be more than just a bureacratic talk shop!!!!!!

]]> By: Annon http://www.kenyanentrepreneur.com/the-unexplainable-rapid-rise-of-equity-bank#comment-68361 Annon Tue, 06 May 2008 17:48:57 +0000 http://www.kenyanentrepreneur.com/?p=1175#comment-68361 So, how is Equity making money if it isn't charging for anything? :sad:

So, how is Equity making money if it isn’t charging for anything? :sad:

]]> By: pesadodo http://www.kenyanentrepreneur.com/the-unexplainable-rapid-rise-of-equity-bank#comment-68360 pesadodo Tue, 06 May 2008 17:15:53 +0000 http://www.kenyanentrepreneur.com/?p=1175#comment-68360 Voh, you got it.....Its not a mystery---A bank that serves people without deep pockets, but who need to be served anyway. My mother got her first loan from the Ngumba bank (Not sure what it's actual name was) in the late 70's ---early 80's to buy her first house in Dandora (98,000 KSh) . At the time no bank would loan a poor woman money to do such a thing. Then came Moi and his Indians and his jungu banks and local banks were crushed, money taken out of the country etc-----voila! a vacuum was created. Equity is filling that vacuum. See this clip about them... http://www.youtube.com/watch?v=FCtOGzudDws Their primary challenge is managing growth. They may also face competition from established snobby banks who realize what they have missed all this time....

Voh, you got it…..Its not a mystery—A bank that serves people without deep pockets, but who need to be served anyway.

My mother got her first loan from the Ngumba bank (Not sure what it’s actual name was) in the late 70′s —early 80′s to buy her first house in Dandora (98,000 KSh) . At the time no bank would loan a poor woman money to do such a thing. Then came Moi and his Indians and his jungu banks and local banks were crushed, money taken out of the country etc—–voila! a vacuum was created.

Equity is filling that vacuum. See this clip about them…

http://www.youtube.com/watch?v=FCtOGzudDws

Their primary challenge is managing growth. They may also face competition from established snobby banks who realize what they have missed all this time….

]]>